Athene Amplify 2.0 No-Fee (NF) Annuity Review: Everything You Need to Know

Overview

The Athene Amplify 2.0 NF is a 6-Year Registered Index-Linked Annuity (RILA) designed to offer a balance between growth potential and downside protection. Unlike traditional annuities, this product allows for market participation while shielding investors from extreme losses. With no annual fees, tax-deferred growth, and multiple index-linked options, it’s an appealing choice for individuals looking to secure their financial future in retirement.

Key Features

1. Registered Index-Linked Annuity (RILA) Structure

• Market-Linked Growth Potential: Earn returns based on the performance of external stock market indices.
• Protection from Market Downturns: Offers buffer options to minimize potential losses.
• No Direct Market Investment: Unlike stocks, funds are not directly invested in the market, reducing risk exposure.

2. No Annual Fees

• Unlike other annuity products, Athene Amplify 2.0 NF does not charge annual fees, allowing for maximum accumulation of earnings.

3. Customizable Protection with Buffer Options

• Buffers shield against a percentage of losses, ensuring a level of principal protection.
• Investors can choose different buffer protection levels depending on their risk tolerance.
• Example: A 10% buffer means that Athene absorbs the first 10% of market losses, with the investor responsible for any losses beyond that.

4. Multiple Term Periods for Growth

• 1-Year, 2-Year, and 6-Year segment term periods allow investors to select how long they want to commit their funds before reallocation.
• At the end of each term, gains are “locked in” and become the new base value for the next segment.
• Longer terms generally provide higher rates and potential returns.

5. Diverse Index Options for Maximum Flexibility

Athene Amplify 2.0 NF provides access to a broad range of market indices, allowing investors to diversify their strategies.

• S&P 500® Index
• Nasdaq-100® Index
• Russell 2000® Index
• MSCI EAFE Index (for international exposure)
• Shiller Barclays CAPE® US Mid-Month Sector TR Net Index
• Fixed Segment Option: Provides full protection from losses while earning a guaranteed fixed interest rate.

6. Two Innovative Crediting Methods

• Milestone Lock:
  • Captures index gains at each milestone and resets buffer protection.
  • Ensures progressive accumulation over a 6-year period.
• Performance Blend:
  • A diversified strategy using three indices (S&P 500®, Russell 2000®, and MSCI EAFE).
  • Allocates weight based on the performance of each index, automatically favoring the best performers.

7. Additional Liquidity & Protection Features

• Annual Free Withdrawals: Up to 10% of the contract value can be withdrawn each year without penalties.
• Performance Lock Feature: Allows investors to lock in gains at any point during the term.
• Confinement & Terminal Illness Waivers:
  • 100% penalty-free withdrawal for those confined to a qualified care facility for 60+ consecutive days.
  • Full access to funds if diagnosed with a terminal illness with a life expectancy of 12 months or less.
• Death Benefit Protection: Ensures beneficiaries receive the greater of the purchase payment or interim value.

Potential Drawbacks

❌ Market Value Risk

• Although buffers provide downside protection, investors are still responsible for losses beyond the buffer percentage.

❌ Limited Access to Funds

• Withdrawals beyond the 10% free withdrawal amount may be subject to withdrawal charges and market value adjustments (MVAs).

❌ Complexity in Growth Calculation

• Earnings are determined by index-linked segment options, which may be confusing for individuals unfamiliar with structured annuities.

❌ Limited Availability of 6-Year Segment Options

• The 6-year term options can only be selected in the first contract year. After the withdrawal charge period, only 1-year options will be available.

Who Should Consider Athene Amplify 2.0 NF?

✅ Pre-Retirees & Conservative Investors – Those looking for growth without full exposure to stock market risks.
✅ Individuals Seeking No-Fee Annuities – Maximizes returns by avoiding ongoing maintenance costs.
✅ Retirees Seeking Protected Growth – The buffer system safeguards savings while still allowing for appreciation.
✅ Investors Who Want Market Participation with Reduced Risk – Unlike traditional fixed annuities, this product allows for market-linked returns while limiting downside.

Final Verdict

The Athene Amplify 2.0 NF offers a strong combination of growth potential, market protection, and flexibility. It’s particularly attractive due to its no-fee structure, diverse index options, and buffer protection against losses. However, potential investors should carefully evaluate their risk tolerance and liquidity needs, as withdrawals outside the allowed limits may incur penalties.

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